When you cannot pay your tax bill in time, you may have the option to apply for a concession in the way of a deferred payment or even an instalment arrangement. This needs to be done at the time of submitting the return. However, this is not granted in every case.
To be eligible for a plan you need to meet these conditions:
1. You mustn’t have any debt with the Tax Office in an irregular status.
2. If the total debt at the time of applying exceeds 18,000€ you need to provide a bank guarantee.
If you miss an instalment, it will not be represented to the bank, so you will need to request a pay slip but if this remain unpaid for too long, they will cancel the instalment arrangement and request the balance in full.
If you cannot keep up with the payment(s), you will receive a letter showing the late payment plus charges. If this remains unpaid
after further requests, the arrangement will be cancelled and the balance of the whole amount will be claimed.
At this point you can ask for payslips in order to pay what is owed as and when you can however this does not stop Hacienda from
attempting to recover their money by placing and “embargo” on your bank account., whilst increasing the amount owed with penalties and interest.
The embargoes can be extended to your car and even your credits, asking in writing to your clients claiming the payments they owe
you. This is something you can avoid with some cooperation with Hacienda.